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investment

TIAA-CREF picked to manage new pension plan

"OUR goal was to choose a provider whose priorities are low-cost and secure investment products, along with robust and dependable customer service," said General Treasurer Gina M. Raimondo.

PBN FILE PHOTO/RUPERT WHITELEY

Posted:
Monday, February 27, 2012 3:38 pm

By Patrick Anderson PBN Staff Writer

PROVIDENCE – The R.I. State Investment Commission has chosen TIAA-CREF to manage the new 401(k)-style defined-contribution pension plan being created for public-sector workers as part of the recent pension system overhaul, Treasurer Gina M. Raimondo announced Monday.

New York-based TIAA-CREF was picked over Great West Retirement Services in a unanimous vote by commission members after hearing presentations from both finalists.

TIAA-CREF had the lowest bid of the finalists, agreeing to a management fee of $32 per enrollee, Raimondo Spokeswoman Dara Chadwick said.

“Our goal was to choose a provider whose priorities are low-cost and secure investment products, along with robust and dependable customer service,” said Raimondo, who heads the Investment Commission, in a news release. “We have accomplished that with the selection of TIAA-CREF.”

Moving a portion of state workers’ retirement savings into a defined-contribution plan accompanying the traditional defined-benefit plan was a central piece of the sweeping state pension system reform bill passed last year by lawmakers. The plan changes were strongly opposed by public-sector employee unions.

The plan is expected to cover around 30,000 workers making annual contributions of between $100 million and $150 million.

TIAA-CREF and Great West were picked as finalists by the Investment Commission earlier this month out of four semifinalists that also included Fidelity Investments and ICMA Retirement Corp.

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